The Internet Love Triangle

Yesterday Viacom and Yahoo announced a multi-year advertising deal. Although the financial terms were not disclosed, Viacom is expected to get 70-80% of the revenue generated by the text-based ads that will appear with search results on content-related Viacom websites.

This "marriage" is Viacom's latest slap in Google's face, after suing them last month for $1 billion in damages from YouTube's copyright infringing content (which Google denies existed after Viacom demanded their content be removed from the video sharing site earlier this year). Google has the largest Internet advertising network, with partnerships with AOL.com, MySpace.com and Ask.com, so for Viacom to go with Yahoo is a bit of a gamble and some might say that they could do better. Everyone would have thought that Viacom and Google would have partnered up in this world of uncertainty. But you never know, do you?

At the same time, this is a great relationship for Yahoo. After being the number one engine on the Internet in the "early days," the younger Google has taken over the market, leaving Yahoo without strong advertising partners like those listed above. But the squabble between Viacom and Google has left Yahoo reaping all the benefits. Now with Viacom on its side, Yahoo may be able to garner the profits it has lost to its arch-nemesis.

This is a dramatic, messy and sexy love triangle worthy of a soap opera. Now that Viacom and Yahoo are tied together for an indefinite amount of years to come, we have plenty of time to see if their partnership will be all that they had hoped. Will their love eclipse Google, who is the other, younger woman in this scenario? Google has the market on its knees with its advertising partnerships and its acquisition of YouTube. If Yahoo does not come through, Viacom may have to get on one knee and beg Google to forget the $1 billion lawsuit and ask her to marry...it.

Tune in next week.

Liedtke, Michael. "Viacom, Yahoo Reach Multiyear Ad Deal." ABCNews.com. 10 Apr 2007.